Allot Communications Ltd (ALLT)
NASDAQ:ALLT
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Allot
(NASDAQ:ALLT)
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Rating:62Neutral
Price Target:
$7.50
▲(6.69% Upside)
Action:ReiteratedDate:02/26/26
The score is driven primarily by improved financial performance (profitability, cash flow, and de-leveraging) and a positive 2026 outlook from the earnings call. These strengths are tempered by weak technicals (downtrend across moving averages with negative MACD) and a rich valuation (high P/E with no dividend yield provided).
Positive Factors
Recurring SECaaS ARR Growth
Rapid SECaaS ARR expansion shifts revenue mix toward recurring, high‑margin subscription streams. This improves revenue visibility, supports predictable cash generation and upsell economics with CSP partners, and strengthens a structural transition from project to subscription revenues over coming years.
Negative Factors
Long CSP Sales & Deployment Cycles
Revenue recognition and ARR expansion depend on CSP/MVNO launch timing and complex integrations. Long sales and deployment cycles make revenue cadence lumpy, delay monetization of large wins, and increase execution risk for investments made today to capture future subscriber monetization.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring SECaaS ARR Growth
Rapid SECaaS ARR expansion shifts revenue mix toward recurring, high‑margin subscription streams. This improves revenue visibility, supports predictable cash generation and upsell economics with CSP partners, and strengthens a structural transition from project to subscription revenues over coming years.
Read all positive factors
Allot (ALLT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$339.53M
Dividend YieldN/A
Average Volume (3M)411.24K
Price to Earnings (P/E)116.9
Beta (1Y)1.59
Revenue Growth7.51%
EPS GrowthN/A
CountryUS
Employees523
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.08
Shares Outstanding48,923,100
10 Day Avg. Volume323,536
30 Day Avg. Volume411,238
Financial Highlights & Ratios
PEG Ratio-0.75
Price to Book (P/B)3.82
Price to Sales (P/S)4.25
P/FCF Ratio27.95
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue2.79
Enterprise Value/Gross Profit3.96
Enterprise Value/Ebitda30.77
Forecast
1Y Price Target
$13.38Price Target Upside90.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.31
Revenue Forecast (FY)$115.84M
Allot Business Overview & Revenue Model
Company Description
Allot Ltd. provides network intelligence and security solutions to protect and personalize the digital experience in Europe, Asia, Oceania, the Middle East, Africa, and the Americas. The company offers Allot Secure Management platform that include...
How the Company Makes Money
Allot generates revenue through a combination of software licenses, subscription services, and professional services. Key revenue streams include the sale of its network security and management solutions, which are offered on a recurring subscript...
Allot Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture driven by double‑digit revenue growth, rapid SECaaS ARR expansion (up ~69% YoY), materially improved profitability and cash generation, a strengthened balance sheet with $88M cash and no debt, and multiple product launches and large Smart wins that improve multi‑year visibility. Notable risks include supply‑chain component cost pressure from AI data center demand, FX headwinds due to a weaker USD versus the shekel, higher planned sales and R&D investments, and timing uncertainty tied to CSP/MVNO go‑to‑market campaigns and long sales cycles. On balance, the company highlighted substantial operational and financial progress with manageable execution and macro risks going into 2026.Positive Updates
Double‑Digit Revenue Growth and Strong Quarterly Performance
Full‑year 2025 revenue of $102.0M, up 11% versus $92.2M in 2024; Q4 2025 revenue $28.4M, up 14% year‑over‑year.
Negative Updates
Supply‑Chain and Component Cost Pressure
Significant industry demand for AI data centers has caused memory and server supply constraints and higher component costs, which Allot expects to put near‑term pressure on cost of goods sold and gross margins, though gross margin guidance remains ~70%.
Read all updates
Q4-2025 Updates
Positive
Negative
Double‑Digit Revenue Growth and Strong Quarterly Performance
Full‑year 2025 revenue of $102.0M, up 11% versus $92.2M in 2024; Q4 2025 revenue $28.4M, up 14% year‑over‑year.
Read all positive updates
Company Guidance
Allot guided to 2026 revenue of $113–$117 million (vs $102.0M in 2025, +11% YoY) with continued double‑digit company growth driven largely by SECaaS, which they expect to deliver strong double‑digit ARR growth (SECaaS ARR was $30.8M at year‑end 2025; SECaaS revenue was $26.8M for FY2025 and $8.1M in Q4, 28% of Q4 revenue), recurring revenue remaining a majority (62% of FY2025; 28% in Q4), and Smart project revenue from recent multiyear wins (including a tens‑of‑millions EMEA deal and a high‑single‑digit‑million APAC deal) adding visibility into 2026–2027; they expect non‑GAAP gross margin around 70% (vs 71.9% in Q4 and 72% for FY2025), continued profitability improvement (Q4 non‑GAAP operating income $3.6M; FY non‑GAAP operating income $8.9M; Q4 non‑GAAP net income $4.1M or $0.08 diluted; FY $10.9M or $0.23), positive operating cash flow ($8.1M Q4; $17.8M FY2025), and a strong balance sheet with $88M cash, no debt and 490 employees, while flagging near‑term COGS pressure from AI‑driven hardware demand and FX headwinds plus planned increases in sales & marketing and modest R&D spend.Allot Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
82
Very Positive
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 101.99M | 92.19M | 93.15M | 122.74M | 145.60M |
| Gross Profit | 72.55M | 63.69M | 52.69M | 82.91M | 101.05M |
| EBITDA | 7.65M | 2.12M | -55.13M | -22.75M | -7.54M |
| Net Income | 3.71M | -5.87M | -62.80M | -32.03M | -15.04M |
Balance Sheet | |||||
| Total Assets | 172.70M | 139.64M | 138.16M | 212.95M | 203.41M |
| Cash, Cash Equivalents and Short-Term Investments | 84.44M | 57.86M | 53.05M | 85.35M | 83.97M |
| Total Debt | 11.13M | 46.34M | 41.93M | 44.70M | 8.25M |
| Total Liabilities | 59.35M | 89.83M | 88.40M | 110.98M | 77.41M |
| Stockholders Equity | 113.35M | 49.81M | 49.76M | 101.97M | 126.01M |
Cash Flow | |||||
| Free Cash Flow | 15.50M | 2.71M | -32.23M | -38.21M | -16.01M |
| Operating Cash Flow | 17.79M | 4.83M | -29.74M | -32.56M | -8.37M |
| Investing Cash Flow | -28.53M | -2.88M | 31.63M | -6.51M | -6.32M |
| Financing Cash Flow | 11.14M | 1.00K | 0.00 | 39.66M | 2.81M |
Allot Technical Analysis
Neutral
7.03
Price Trends
7.76
Negative
8.81
Negative
8.87
Negative
Market Momentum
-0.17
Negative
49.96
Neutral
54.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLT, the sentiment is Neutral. The current price of 7.03 is above the 20-day moving average (MA) of 6.72, below the 50-day MA of 7.76, and below the 200-day MA of 8.87, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 54.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALLT.
Allot Risk Analysis
Allot disclosed 44 risk factors in its most recent earnings report. Allot reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allot Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $339.53M | 116.93 | 3.98% | ― | 7.51% | ― | |
62 Neutral | $531.07M | -35.89 | -3.39% | ― | 7.42% | 34.42% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $210.95M | -10.23 | -31.67% | ― | 15.73% | 40.14% | |
48 Neutral | $263.41M | -21.55 | -7.62% | ― | ― | ― | |
47 Neutral | $303.15M | 16.48 | 19.25% | ― | -44.07% | 25.75% | |
44 Neutral | $117.10M | -1.26 | -69.36% | ― | 313.35% | ― |
* Technology Sector Average
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Allot Corporate Events
Allot Posts Record 2025 Profit as SECaaS ARR Jumps 69%
Feb 25, 2026
Allot reported strong fourth-quarter and full-year 2025 results on February 25, 2026, highlighting a sharp acceleration in its Security-as-a-Service business and a successful operational turnaround. Quarterly revenue rose 14% year over year to $28...
Allot Ltd. Concludes Annual General Meeting with Key Approvals
Dec 15, 2025
On December 15, 2025, Allot Ltd. held its Annual General Meeting of Shareholders at its headquarters in Hod-Hasharon, Israel. During the meeting, shareholders voted on various agenda items, with all but one receiving the required majority approval...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.